Portfolio Update

We preview the upside catalysts that could be in play for some of our Lifelong Income Portfolio holdings and replace one of our winners with another higher yielder that offers a better risk-reward proposition

Investor talk has turned against the Trump Trade, and for all the wrong reasons. While a market correction is due, look to the sectors that did well during the post-election period to perform well–making pullbacks an opportunity to buy.

Now more than ever, many of the biggest, safest and fastest growing yields come in small packages. We hold four relatively small capitalization, high dividend companies in the Lifelong Income Portfolio and review the power of small strength.

The final five Lifelong Income Portfolio members released their numbers, allowing us to gauge their health and dividend stability. Given the difficulty of revenue growth for many companies, it’s more important than ever to examine how costs and operations are being managed.

Incoming data reinforce our take that the US economy has strengthened. But technical warning signs and policy concerns mean investors who invest in specific stocks and not the broader market have a better chance of outperforming.

The implications of the US economy moving into a period of stronger growth, faster inflation and rising rates shouldn’t be overlooked. And neither should the newest addition to the portfolio, an addition whose business goes from headwind to tailwind in this new environment.

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